Scrap allowance in Planning raw mateial

Dear all GURU,
we are planning raw material as per BOM quantity and scrap allowance to it.(ONLY SUBCONTRACT SCENARIO)
ex. bom says that Inhouse component 100 pcs needs 100 pcs of semi finished subcontract material and for that 100kg of raw material need to send to subcontract supplier (IDEAL situation and also as per drawing)
but as we all know there always be some addtional wastage of material due to setup of m/c and for initial parts loading..so between supplier and customer there is agreement of 5% allowance .
so as per this requirement if required inhouse component requirement is 100 PCs then MRP should plan for 105 PCS semi finished subcontract material and raw material to provide vendor for processing is also 105 KGs.(and BOM is same 100 to 100 to 100)
So please suggest
1) how to map this requirement for MRP.
2) how to know from the system that supplier is consuming more than 5% allowance.
Regards,
Vimlesh

Hi Vimlesh,
You can maintain scrap in MRP-4 view of the material or in BOM, in item details. The scrap maintained in BOM has precedence over the one in matl master.
So in your case you specify the % as 5. So now system while planning will plan for the additional 5%.
Scenario:
Mtl A req is 100 nos as per BOM with 5% scrap tolerance
The procurement will be for 105 nos.
But while issuing to sub-contractor you issue only 100.
If additional qty is required, then issue the same with ref to your subcon PO.
Post GR for the PO & system will consume 100 qty of Mtl - A.
Now go to MB04 & there you specify that there was an additional consumption of 5 pieces of Mtl - A
Thereby the costs will be booked to the same sub-contracting PO & you can also keep tab on the additional qty issued.
Hope the above is clear, revert if you need additional info.
Regards,
Vivek

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